The Autorité des Marchés Financiers (AMF) has clarified its place on crypto belongings in its response to the European Fee’s session.
Although the French regulator defines any crypto asset as “a digital asset that will depend upon cryptography and exists on a distributed ledger,” it nonetheless thinks it’s early for the exact classification of such belongings.
The regulator, nevertheless, clarified that correct distinction between crypto-assets which are certified as monetary devices and that falls below digital cash needs to be made.
“We consider you will need to maintain the digital cash regime, which is related and shouldn’t be undermined by a brand new regulation. Nonetheless, it might be helpful to work on the articulation between the totally different regimes,” the regulator said.
Stablecoins are a risk to the financial system
The French regulator can also be involved with the wide-spread use of stablecoins and identified that authorities may ban them if obligatory.
This echoes with the nation’s stand towards Fb’s proposed digital forex Libra and its issues for its impression on the economic system.
“This proposal would permit a regulatory framework to use to any stablecoin no matter its measurement,” the response famous. “Nonetheless, this requires the flexibility to attract a line between stablecoins which might be involved by obligatory necessities and different fee tokens solely partially coated by obligatory necessities.”
The French watchdog additionally thinks that the scope of the European Union needs to be restricted to “crypto-assets” in an effort to permit a extra “focused effort.”
The response additionally identified the advantages of preliminary coin choices (ICO) over the normal preliminary public choices (IPOs) however is anxious with the dangers related to such funding methods.
Notably, the AMF final month authorized registration of Coinhouse, a crypto buying and selling firm, paving its approach for acquiring a banking license within the nation. It was the primary digital asset firm acquiring such approval from the regulator.
The French push in the direction of regulating the trade comes at a time when German regulators are steadily constructing legal guidelines for crypto belongings.